According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates fell last week from one week earlier. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But while rates were down, the decline wasn’t enough to push mortgage demand higher. Joel Kan, MBA’s vice president and deputy chief economist, says demand was down due to falling refinance activity. “Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook,” Kan said. “Refinance applications were down almost 6 percent last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
